Rebuilding Credit After Bankruptcy

Charlotte Bankruptcy Lawyer

If you are considering filing for
bankruptcy, one of your biggest concerns may have to do with how bankruptcy will
affect your credit. Will your credit be ruined? Will you be able to get
credit cards ever again? These are valid concerns that we can help you with!

At
Schwilm Law Firm, PLLC we have over 15 years of experience handling bankruptcy cases in the Greater Charlotte Area, over which time
we have helped thousands of individuals and couples obtain debt relief under
Chapter 7 and
Chapter 13 bankruptcies. Rebuilding your credit is entirely possible after a bankruptcy
discharge, and it is one major benefit that cannot be underestimated.

Credit Rebuilding Tips

Once you file for bankruptcy, you will want to immediately get to work
to improve your credit score. By dedicating your efforts to rebuilding
your credit, your credit score can reach the 700s long before the bankruptcy
falls of your credit.

Tip # 1: Get a Secured Credit Card You can go down to your local bank or credit union and obtain a secured
credit card. With a secured credit card, you deposit money; for example,
$1,000 and draw from that money as if it were a credit card. By making
on-time payments every month, you are re-establishing a good payment history.

Tip # 2: Shop Credit Card Offers Online Did you swear off credit cards forever? Obtaining credit cards is one of
the surest ways to start rebuilding your credit and they are a necessary
credit rebuilding tool. We recommend shopping credit card offers online.
Search for no annual fee or low annual fee cards since many cards are
full of unnecessary fees. When you do acquire your first credit cards,
you can expect a low credit line and a high interest rate initially, but
as you pay your payments on time, you will begin to take advantage of
increased credit lines and more competitive offers.

Tip # 3: Don't Charge up All of Your Credit When you do get a credit card, it's important that you do not run up your
credit. It's better to charge a small amount, like $30.00 a month or so
each month and pay the balance in full. If you wind up getting a bunch
of credit cards within a few years of your bankruptcy discharge and nearly
max out your cards, it will impact your credit score and your ability
to obtain better credit card offers.

Tip # 4: Live Within Your Means Living within your means is one of the best ways to ensure that you do
not get into a bad situation again. We suggest sitting down and developing
a budget and sticking to it. Do you have more money coming out than what
is coming in? If so, you will need to take a look at places where you
can cut back. For some people it means eating out less often, clipping
coupons, brewing their own coffee, or brown bagging lunch to work every
day. Sometimes making a few adjustments can save you hundreds of dollars
each month.

Tip # 5: Pay All of Your Bills on Time This one is sort of a no brainer, but it can't be stressed enough. It's
essential that you pay all of your bills on time. Nothing looks worse
on a credit report after a bankruptcy than late payments and charge offs.
By paying your bills on time, credit card companies will see that you
are actively working to be a competent and trustworthy debtor.

Tip # 6: Save for a Rainy Day In life, unexpected things happen. Cars breakdown, kids need cavities filled,
roofs leak, old rusty plumbing explodes – we get it. This is why
it's so important that you do what you can to save for one of these unexpected
expenses. If you don't have a cushion set aside, you could be forced to
put the charge on credit, or worse, you may receive an emergency service
that you can't afford to repay. We recommend starting out with 10% of
every pay check, but if that is too much, start with whatever you can afford.

Contact the Schwilm Law Firm, PLLC today!

At Schwilm Law Firm, PLLC, we want to help you and your family rebuild
your financial health and look forward to a brighter financial future.

The information on this website is for general information purposes only.
Nothing on this site should be taken as legal advice for any individual
case or situation. This information is not intended to create, and receipt
or viewing does not constitute, an attorney-client relationship.